STRATEGIC GAMING MANAGEMENT ANNOUNCES COMPLETION OF ACQUISITION OF SUNLAND PARK RACETRACK & CASINO FOR $301 MILLION

Rhea-AI Summary

Strategic Gaming Management announced on October 15, 2025 the closing of its acquisition of Sunland Park Racetrack & Casino for $301 million. Immediately after closing, Strategic sold the real property to Gaming and Leisure Properties (NASDAQ: GLPI) in a sale-leaseback.

The Sunland Park asset includes 738 slots, 12 EGTs, ~25,000 sq ft gaming space, a 1-mile track with a 733-seat stadium, and sits on ~157 acres. The transaction is the company’s third acquisition in two years. Strategic also named Matthew Flandermeyer as CFO and promoted Fred Heinrich to President of Sunland Park, both effective immediately.

Positive

• Acquisition price of $301 million completed
• Real property sold to GLPI via sale-leaseback
• Adds 738 slots and 12 EGTs to portfolio
• Property includes a 1-mile track and 733-seat stadium
• Third acquisition in two years, expanding platform scale
• Appointed CFO Matthew Flandermeyer with nine years at GDEN

Negative

• Real property ownership transferred to GLPI in sale-leaseback
• Transaction details did not disclose lease terms or financing structure

Insights

M&A and Corporate Strategy Expert

Sale-leaseback funds an operator acquisition and expands the portfolio, altering capital structure and operator scale.

Strategic Gaming completed an acquisition financed via an immediate sale-leaseback of the real property to Gaming and Leisure Properties, Inc. (GLPI), supplying liquidity while transferring real-estate ownership. The deal size is $301 million and adds a 157-acre asset with 738 slots and a 1-mile racetrack to a four-property operating platform.

Dependencies and risks include lease terms, future cash rent obligations, and integration of the newly acquired operations under existing management. The announcement names a new CFO, which could speed financial integration, but the content gives no lease rates, debt assumptions, or expected synergies, so fiscal impact remains uncertain.

Watch for the published lease schedule, any disclosed financing covenants, and operating metrics such as gaming revenue and EBITDA over the next 12–24 months, since those will show whether the sale-leaseback preserves flexibility or raises fixed costs.

Real Estate / REIT Capital Markets Expert

Sale-leaseback transfers property risk to GLPI and converts real estate into operating capital for the buyer.

A sale-leaseback to GLPI shifts real-estate ownership off the operator's balance sheet and likely creates a long-term triple-net style lease obligation for the operator. The property includes significant land (~157 acres) and a 25,000 sq ft gaming footprint with 738 slots, which supports the REIT’s asset profile.

Key dependencies are the lease duration, rent escalators, and any landlord approval rights; none are disclosed. Those terms will determine whether the operator benefits from improved liquidity or faces higher fixed charges that compress operating margins.

Monitor the lease term and rent escalation disclosures, plus quarterly operating performance and any subsequent financing filings within the next 4 quarters to assess the impact on both the operator’s cash flow and GLPI’s expected yield.

Company announces key hire and management changes.

RENO, Nev., Oct. 15, 2025 /PRNewswire/ -- Strategic Gaming Management, LLC ("SGM") today announced the closing of its acquisition of Sunland Park Racetrack & Casino for $301 million. Immediately following closing, SGM sold the real property to Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) ("GLPI"), in a sale-leaseback transaction.

The transaction, the third acquisition over the last two years, represents a transformational addition to the fast-growing portfolio of assets. J. Grant Lincoln, the Company's Founder and CEO, commented, "With the acquisition of Sunland, we are well on our way to our goal of being a scale operator of regional assets with rich histories, competitive moats, and very strong and loyal customer bases. We will continue to invest in our assets and thoughtfully grow our platform while continuing to pursue opportunities that meet our strategic plans. We welcome the incredible Sunland Park team to the Strategic family and look forward to many years of success together." Sunland Park is the leading property in the New Mexico Gaming and Racing ecosystem and offers 738 slots and 12 EGTs across 25,000 square feet of gaming space. The property includes a 1-mile Thoroughbred and Quarter Horse track with a 733-seat stadium and hosts the prestigious Sunland Park Derby. The property sits on approximately 157 acres.

In addition to today's closing, the Company announces Matthew Flandermeyer, former Chief Financial Officer of Golden Entertainment, as CFO of Strategic Gaming Management effective immediately. J. Grant Lincoln noted, "Matt is a proven financial leader in the gaming industry who I have worked closely with in the past that brings us critical experience as we continue to grow." Mr. Flandermeyer will join Strategic from his family business ownership of fast-casual restaurants and taverns. Prior to being a business owner, Mr. Flandermeyer served as Chief Financial Officer of Golden Entertainment (NASDAQ: GDEN) for nine years, responsible for all aspects of finance, business development, IT, compliance, legal, risk management and accounting functions for the Company, importantly overseeing the Company through profound stages of growth resulting in a public listing on NASDAQ.

Mr. Flandermeyer said, "To me, Strategic represents an incredible opportunity for growth which I clearly recognize from prior experience. I am excited to collaborate with Grant and the team, building on what they already have in place and contributing to the growth that lies ahead."

The Company also announces Fred Heinrich as President of Sunland Park effective immediately. Mr. Heinrich is the current General Counsel & Compliance Officer. In his expanded role, Mr. Heinrich will oversee operations and direct strategic aspects of the business. SGM Founder and CEO, J. Grant Lincoln said, "I am excited for Fred in his new role as it perfectly aligns with his capabilities and history at Sunland Park and am extremely pleased to have him guiding us in growing our Sunland property".

Mr. Heinrich noted, "I am really excited to work with Grant and the wonderful team that exists here at Sunland, as well as the surrounding communities in this new role. I am sure we can do remarkable things together and look forward to the next chapter for this storied property."

About Strategic Gaming Management, LLC

Strategic Gaming Management, LLC is a fast-growing operator of high-quality gaming assets in the Midwest and Mountain West, United States. The Company currently operates four properties in Nevada, South Dakota and New Mexico and Founded in 2009 by J. Grant Lincoln with the acquisition of Baldini's in Reno, Nevada. Prior to the acquisition of Baldini's and formation of Strategic Gaming Management, Mr. Lincoln, a thirty-five year industry veteran, was the founder and CEO of Century Gaming, who oversaw the Company through a period of explosive growth resulting in Century becoming the largest regional slot route operator with over 10,000 games and numerous acquisitions.

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SOURCE Strategic Gaming Management, LLC

FAQ

What did Strategic Gaming Management announce about Sunland Park on October 15, 2025?

Strategic announced the $301 million acquisition of Sunland Park and an immediate sale-leaseback of the real property to GLPI.

How many gaming positions does Sunland Park have after the Strategic acquisition?

Sunland Park offers 738 slots and 12 EGTs across about 25,000 sq ft of gaming space.

What role will GLPI (NASDAQ: GLPI) play after the Sunland Park transaction?

GLPI purchased the real property from Strategic in a sale-leaseback, becoming the property owner.

Who is the new CFO of Strategic Gaming Management and what is his background?

Matthew Flandermeyer is named CFO, having served nine years as CFO of Golden Entertainment (NASDAQ: GDEN).

When did the acquisition of Sunland Park close and how does it affect Strategic’s portfolio?

The acquisition closed on October 15, 2025, marking Strategic’s third acquisition in two years and expanding its regional asset base.